We’re excited to announce the launch of Jet Finance on Mintos, one of the front-runners in Kazakhstan’s car lending market. Founded in 2018, the company started out as a fully owned subsidiary of Mogo Finance (now Eleving Group). In 2021 Mogo reassessed its business strategy for the Kazakhstan market and decided to exit the country. The local Mogo management saw a good opportunity to use their experience and local market knowledge and bought out the Kazakhstan entity, founding Jet Finance. The company operates under the brand name Jet Car.
To date, Jet Finance has issued more than €12 million in loans to its 3200 clients. The company’s current net portfolio is €5 048 220 as of 22 June 2021. Jet Finance currently employs 60 people.
Jet Finance during the Covid-19 pandemic
“I am pleased with how we managed to respond to challenges brought by the Covid pandemic. In fact, thanks to the work of our team we had just a short three-month decline in incoming payments which quickly recovered from June 2020 (please see final slides of our corporate presentation for more detailed figures). In accordance with our decision to stay loyal to our customers, we adopted new debt collection rules by refraining from immediate car repossessions in case of late payments and instead helping our clients through such instruments as alternative schedules or waiving late fees. We are happy that our initiatives were well received by borrowers, and they thanked us with great payment discipline and much improved impairment levels afterwards. On a side note, we also gained experience at dealing with sometimes excessive pro-borrower requirements of the regulator and learned that it is always possible to find acceptable trade-offs through round table discussions.”
The company has shared that the instruments of support, such as alternative schedules for loan repayments, were offered until June 2020. Along with instructions of the local government, the situation in Kazakhstan started to improve, and at the moment no such measures are being offered.
Jet Finance car loans on Mintos
Annual interest rates
Up to 9%
Average APR*
54.65%
Average loan amount
€3900
Non-performing loans ratio (PAR 60)**
2.6%
Average loan term
39 months
Skin in the game
10%
Mintos Risk Score
7
Buyback obligation
Yes
Interest on delayed payments
Yes
Annual interest rates
Up to 9%
Average APR (Annual Percentage Rate)
54.65%
Average loan amount
€3900
Non-performing loans ratio (PAR 60)
2.6%
Average loan term
39 months
Skin in the game
10%
Mintos Risk Score
7
Buyback obligation
Yes
Interest on delayed payments
Yes
*Annual Percentage Rate
**Portfolio At Risk (overdue more than 60 days)
The Mintos Risk Score for loans issued by Jet Finance is 7, with the subscores of 7 for loan portfolio performance, 7 for loan servicer efficiency, 5 for buyback strength, and 6 for cooperation structure.
Jet Finance uses a proprietary scoring algorithm to assess the creditworthiness of borrowers, taking into account multiple data points, such as information from a credit bureau (PKB), the State Center of Pension Payments (SCPP), the Ministry of Justice database, and others. Pledged cars are equipped with GPS systems, which allow the company to quickly find and repossess cars if necessary.
To provide additional security to investors on Mintos, Jet Finance will enter into a pledge agreement with Mintos under which the part of the portfolio of loans is pledged as collateral.
To obtain exposure to Jet Finance loans, investors will be able to invest in loans issued by Mintos Finance to Jet Finance, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Jet Finance will be pegged to a respective loan issued by Jet Finance to the final borrower. Mintos Finance is a Mintos group company. A detailed description of the new structure is available in the Mintos Finance loan agreement and assignment agreement.
Comment from Jet Finance’s CEO
“Our main goal is to become a sustainable go-to destination for Kazakhstani nationals willing to find financing for car acquisition. This includes capturing a significant share of the market, which wouldn't be possible without solid fundraising efforts. In this context, our listing on Mintos creates a great opportunity to explore and diversify our sources of liquidity. In addition, given our ambitions to go global, working with such an international platform as Mintos adds a material level of credibility to our company.”
Meet the Jet Finance team
Azamat Seitbekov, the company’s CEO, holds an MBA from INSEAD business school (France). He has extensive experience in corporate and public administrative sectors. He has founded and developed e-commerce start-ups in Kazakhstan and Central Asian countries, and previously worked as country manager for Mogo Finance business in Kazakhstan.
Daniyar Beldeubayev, Head of business development, has experience in growing microfinance organizations such as Turbomoney and Qanat, large payday companies in Kazakhstan.
Aibek Ikramov, Head of Underwriting and Risks, worked as Head of Risks in Eurasian Bank, Nurbank, and Sberbank, with responsibility for building scoring models.
How to invest in Jet Finance car loans
Mintos has added Jet Finance car loans to the Diversified and Conservative strategies. If you want to invest in these loans with a custom automated strategy, make sure to adjust your strategy settings. If you’re investing manually, you can filter the loans on the Primary Market.
About Jet Finance
Jet Finance is a new brand on the Kazakhstan market. Originally part of Mogo Finance (now Eleving), the company has successfully adapted to the specifics of the Central Asian market and became independent in 2021. Owing to a well-built strategy, business processes and competent use of resources, Jet Finance is one of the front-runners in Kazakhstan’s car lending market. The legal entity name of Jet Finance is TOO MFO Mogo Kazakhstan, however it does not have any legal ties with the former Mogo Group, now Eleving.
